What is the definition of 'Effective Date' in the Christies International Real Estate general release?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE (the "Release") is made and entered into on this day of , 20 (the "Effective Date"), by and between: |
|---|
| |
| Christie's International Real Estate, LLC, a Delaware limited liability company |
| ("Licensor"); and |
| |
| a [resident of] |
| [corporation organized in] [limited liability company organized in] |
| [("Affiliate")] ("Transferor")]. |
| BACKGROUND: |
| A. |
| Licensor and [Affiliate] [Transferor] are parties to a Broker Affiliate License Agreement dated |
| (the "License Agreement") regarding the operation of a "Christie's International Real |
| Estate" brokerage business (also referred to as the "Business"); |
| B. |
| Licensor and [Affiliate] [Transferor] have agreed, pursuant to the License Agreement, [to renew or |
| extend Affiliate's rights under the License Agreement (the "Renewal Transaction")] [to permit a transfer |
| or assignment of pursuant to Sections 13 and 14 of the License Agreement (the "Transfer |
| Transaction")], and in connection with the [Renewal Transaction] [Transfer Transaction], Licensor and |
| [Affiliate] [Transferor] have agreed to execute this Release, along with such other documents related to the |
| approved [Renewal Transaction] [Transfer Transaction]. |
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate FDD, the 'Effective Date' in the context of the general release refers to the date when the release is made and entered into. This date is significant because several obligations and timelines are tied to it.
For a Christies International Real Estate franchisee, the effective date triggers several key operational deadlines. For instance, the franchisee typically has 120 days from the Effective Date to commence business operations. Additionally, franchisees are usually given 90 days from this date to install all required indoor and outdoor signs displaying their business name and the Christies International Real Estate marks.
Furthermore, if a franchisee is converting an existing brokerage, they are not required to pay royalty fees on real estate transactions that are under contract at the time of the Effective Date but close after this date. However, royalty fees are applicable to transactions under contract during the agreement term but closing after the agreement's expiration, termination, or transfer. The franchisor may also implement, begin collecting, and increase an Advertising Fund Fee at any time upon written notice to the franchisee from the Effective Date.